Current Issue Headlines

Social media can help and hurt compliance efforts – providing the opportunity to spread the compliance message and aid in due diligence efforts, but also potentially exposing the company to harm caused by inappropriate posts. In this, the second article in our series on the advantages and pitfalls of social media, we discuss best practices for including social media in compliance policies, such as in training, messaging, and monitoring compliance programs; how social media use can help demonstrate good behavior to the government; and how to handle the risks that including social media as part of a compliance program pose. The first article discussed how companies can use social media to aid with due diligence of third parties and target companies; the limits of using social media for those purposes; government expectations; and how to use social media during internal investigations. See also “In-House Experts Discuss Social Media Pitfalls and Compliance Opportunities,” The FCPA Report, Vol. 3, No. 15 (Jul. 23, 2014).

As the Petrobras investigation continues to unfold, consequences for companies and individuals, both in Brazil and worldwide, grow. Raids have been conducted; hundreds of subpoenas issued; and the number of guilty pleas is already in the double digits. Companies involved with Petrobras face a variety of consequences including potential FCPA charges. In a recent webinar, Mayer Brown partner Kelly Kramer, and Tauil & Chequer Advogados partners Salim Jorge Saud Neto and Leonardo Morato discussed the history of the Petrobras investigation, the economic consequences for Petrobras suppliers and the international consequences of the scandal. See also “The Changing Dynamics of Anti-Corruption Enforcement in Brazil,” The FCPA Report, Vol. 2, No. 23 (Nov. 20, 2013).

An active third-party due diligence program protects a company from a host of dangers, including anti-corruption violations, sanctions issues and forming relationships with destructive business partners. A recent program presented by the Society of Corporate Compliance and Ethics highlighted the continued importance of third-party due diligence for anti-corruption compliance and the impact of economic sanctions regimes on that due diligence. The program featured Candice D. Tal, founder and Chief Executive Officer of security and risk management consulting firm Infortal Worldwide Inc.; and Cordery Compliance Limited’s principal adviser André Bywater and partner Jonathan P. Armstrong. See also “Risk-Based Solutions to Complying with Anti-Money Laundering, Export Controls, Economic Sanctions and the FCPA,” The FCPA Report, Vol. 3, No. 2 (Jan. 22, 2014).

The booming U.K. property market may be serving as a safe haven for corrupt assets, according to a recent report by the U.K. chapter of watchdog Transparency International. It found that the volume of property registered to anonymous companies is a “major barrier” to U.K. law enforcement investigations and interferes with effective money laundering diligence and compliance with international sanctions. See also “Eye-Opening Report Helps Companies Tackle European Corruption Risks,” The FCPA Report, Vol. 3, No. 6 (Mar. 19, 2014).

Six Ecopetrol employees have been arrested in Colombia for PetroTiger bribes. A former executive at Australia’s largest bank has been charged with bribery. China’s supreme court and supreme prosecutor claim the GSK anti-bribery case was a major achievement for 2014. A mid-level PwC manager has been questioned in an Indian corporate espionage probe. In Brazil: The anti-bribery agency is expected to start proceedings against seven other Petrobras suppliers; Brazil recovers $44.5 million in bribes from former Petrobras manager; Petrobras assembles a task force to include bribery losses in its financial results; and President Rousseff and her predecessor have been cleared of corruption charges. For more on Petrobras, see “History and Consequences of the Extensive Petrobras Scandal,” above.

WilmerHale recently announced that Anjan Sahni, Chief of the Securities and Commodities Fraud Task Force in the U.S. Attorney’s Office for the Southern District of New York, will join the firm as a partner in its white collar and securities enforcement practices in New York.